BRICS Nations Announce New Currency Pegged to Commodities
At the BRICS summit on August 22, a new currency is set to be announced, which will be pegged to commodities, specifically gold. This comes as central banks worldwide have been buying record amounts of gold, with almost 230 tons purchased in the first three months of this year alone. However, the price of gold remains depressed due to alleged price suppression by big commercial banks on the London Bullion Metals Exchange and the Commodities Exchange.
The Power of the BRICS Nations
The BRICS nations, consisting of China, Russia, India, Brazil, and South Africa, hold and produce a significant share of the world’s resources. With China, India, Brazil, and Russia being among the largest countries in terms of land mass and population, the BRICS nations have immense power. If they were to introduce a rival reserve currency to the US dollar, it would have a major impact.
Potential Creation of a New Bond Market
To support a BRICS reserve currency, the creation of a deep and liquid bond market is necessary. Economist Jim Rickards suggests that this could be achieved by establishing a bond market in around 20 countries simultaneously. With the large population of the BRICS nations, retail investors could be encouraged to buy these bonds, similar to how Liberty Bonds were used in the US during World War I.
The Implications for the World Order
If the BRICS nations successfully introduce a new currency and bond market, it has the potential to completely change the world order. The current financial system, based on fiat currencies, could face upheaval and turmoil. Retail investors are advised to protect themselves by investing in gold, silver, and bitcoin as time is running out.
Hot Take: BRICS Nations Poised to Disrupt Global Financial System
With their significant resources, land mass, and populations, the BRICS nations have the potential to challenge the dominance of the US dollar and reshape the global financial system. The introduction of a new currency and bond market could lead to a shift in power and the devaluation of traditional fiat currencies. Retail investors should consider diversifying their portfolios with gold, silver, and bitcoin to safeguard against potential financial instability.
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